Wingstop Inc
WING: XNAS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$927.00 | Gskdvrp | Nlksgqkrqw |
Wingstop's Momentum Continues Unabated as Easing Bone-in Wing Costs Bolster Unit Economics
Business Strategy and Outlook
While we don't foresee Wingstop achieving management's target of becoming a top-10 restaurant brand in the upcoming decade, we do see a meaningful development runway for the chicken chain, with our estimates calling for low-teens average annual unit growth over that period. Our forecasts are underpinned by best-in-class unit economics and a sizable development pipeline, corroborating management's target for more than 10% annual unit growth over the medium- to long term. Operationally, we believe that management's strategy is cogent, with priorities falling into three key buckets: improving unit economics, driving brand awareness, and expanding into international markets.